OM Project Matrubhumi Group 7 Section A

8/2/2019 OM Project Matrubhumi Group 7 Section A

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A

TERM PROJECT

ON

MATRUBHUMI PRINTING AND

PUBLISHING COMPANY LIMITED

JYOT TALREJA PGP

PULKIT KHANNA PGP/15/037

SUJATA ARYA PGP/15/054

SOWMYA R PGP/15/056

SWATI GOVIL PGP/15/059

VIJETA SHRIVASTAVA PGP/15/061

VYAS ISHA SHAILESH PGP/15/063

For the partial fulfillment of the course of

OPERATIONS MANAGEMENT II

INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE

MARCH 2012


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ACKNOWLEDGEMENTS

A study always requires the goodwill, encouragement, guidance and support of many

people. I am grateful to ProfessorG Anand for giving us an opportunity to work under

his guidance on the project titled Operations Management at Matrubhumi Printing andPublishing Company Limited.


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Table of ContentsACKNOWLEDGEMENTS ........................................................................................................................ 2

ABOUT MATRUBHUMI.......................................................................................................................... 4

Printing centers (known as Editions) .................................................................................................. 4

ASSEMBLY FLOW .................................................................................................................................. 5

INDUSTRY OVERVIEW.......................................................................................................................... 6

Competitors ........................................................................................................................................ 7

OVERVIEW OF OPERATIONS ............................................................................................................... 8

Supply Chain ........................................................................................................................................ 8

Hau Lees uncertainty framework....................................................................................................... 8

Efficient Supply Chain: .................................................................................................................... 8

BACKWARD SCHEDULING.................................................................................................................. 10

The Schedule ..................................................................................................................................... 10

WORKFORCE SCHEDULING................................................................................................................ 10

Workforce scheduling for newspaper printing ................................................................................. 11

Workforce scheduling for periodicals printing ................................................................................. 11

ANALYSIS OF WASTAGE..................................................................................................................... 12

AGGREGATE PRODUCTION PLANNING ............................................................................................ 13

CAPACITY PLANNING ......................................................................................................................... 14

OPERATIONS PROCESS IN A PRINTING PRESS ................................................................................ 15

QUALITY CONTROL............................................................................................................................. 16

Source of Variation ........................................................................................................................... 16

Existing Process ................................................................................................................................. 16

SUGGESTIONS FOR QUALITY MANAGEMENT .................................................................................. 17

Installation ........................................................................................................................................ 17

Daily Cleaning Process ...................................................................................................................... 17

Frequent Oiling ................................................................................................................................. 17

Scheduled Maintenance ................................................................................................................... 17

Computerized Systems ..................................................................................................................... 17

Predictive Maintenance Integration ................................................................................................. 17

INVENTORY MANAGEMENT .............................................................................................................. 18

RECOMMENDATIONS ......................................................................................................................... 19


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ABOUT MATRUBHUMI

The Mathrubhumi Printing & Publishing Company Limited publishes - Mathrubhumi daily, one

of the leading Malayalam dailies and ten periodicals viz., Mathrubhumi Illustrated Weekly,

Grihalakshmi, Chithrabhumi, Sportsmasika, Arogyamasika, Thozhilvartha, Balabhumi, Yathra,

Minnamini and Cartoon Plus. Mathrubhumi newspaper is published from Kerala, India.

Mathrubhumi was founded by K. P. Kesava Menon, an active volunteer in the Indian freedom

struggle against the British.Mathrubhumi is one of the most circulated newspapers in Kerala,

and is headquartered in Calicut. Currently, with fourteen editions, including the ones at New

Delhi, Bangalore, Chennai and Mumbai it has an impressive circulation of over one million

copies. /The Mathrubhumi Group is not only a fast growing publishing house of repute but also

a corporate entity in the mass communication industry, and has struck deep roots in the hearts

of Malayalees wherever they are.

Mathrubhumi's Mission - of Truth, Equality & Individual Liberty, which was laid down in its firstedition on 18th March, 1923 is the pathfinder for the Preamble of our Constitution.

Printing centers (known as Editions)

The company has also entered the world of television and telecasting with a significant

production house, MBTV (Mathrubhumi Television), which has been producing Serials and

Telefilms of the highest quality.

In Kerala

Kozhikode

Kottayam

Thiruvananthapuram Kochi

Thrissur

Kannur

Kollam

Palakkad

Malappuram

Alappuzha

In Rest of India

Bengaluru

Chennai

Mumbai Delhi

In Middle East

Gulf Edition


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ASSEMBLY FLOW


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INDUSTRY OVERVIEW

A large number of newspapers are published in Kerala, the prime languages of publication being

Malayalam and English. Mathrubhumi, along with Malayala Manorama, Madhyamam, Kerala

Kaumudi is among the most widely circulated newspapers in the state. Mathrubhumi currently

has the following publications apart from its daily newspaper and caters to a wide variety of

audiences.

In the newspaper industry, time is of critical importance. From the beginning of the process,

right up to the final delivery of the paper at a subscribers doorstep, time plays a crucial role.

Sports Masika Balabhumi CartoonPlus

Arogya MAsika Chitrabhumi Grihalakshmi

Minnaminni Thozhilvartha azhchapathippu

Yathra


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The staff at Mathrubhumi, be it a journalist, editor, publisher, struggles with deadlines

everyday; they simply cannot afford to be late! If the news is reported late, some other paper

will report it and it might lead to reduction in their readership. Advertisements need to be

placed by a certain time, or they dont make the next days paper. There are situations when the

paper has already been printed and some breaking news has just been reported, so that all the

copies have to be scrapped and fresh printing has to be done with the latest news piece

included. They simply cannot afford to stay behind time. For a reader who is in the habit of

reading the paper at a particular time everyday, if it is delivered late by a few hours, the paper

may only used for the purpose of fanning oneself! They do not have the luxury to skip a day of

work or ask for more time, deadlines here are sacrosanct.

Competitors

Mathrubhumis prime competitors in the Kerala region are:

Apart from these, there is Janayugam, Varthamanam, Chandrika, Janmabhumi, The Hindu, MetroVartha, which also enjoy wide circulation across the state.

MalayalaManorama

Madhyamam

Kerala

Kaumudi

Desabhimani

Deepika

Mangalam

Thejas


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OVERVIEW OF OPERATIONS

Supply Chain

Suppliers: Global suppliers for newsprint and Local suppliers for inks and machinery

Warehouse: Mathrubhumi follows centralized purchase system and the newsprints are

shipped to Cochin were a warehouse is maintained.

Printing: From the Cochin warehouse, regular supplies are transported via road to printing

presses at different parts of Kerala. At a time, 2-3 months of inventory are maintained at a

printing press main factory.

Distribution: Distribution is done via agents. At Kozhikode, Mathrubhumi has a contract with

1100 agents. Based on the locality that a agent deals with, the newspapers and packed, bundled

and distributed to the agents directly at the factory outlet. The transportation from the factory

outlet is done by the agents themselves who have logistics partners.

Customers: The agents employ different delivery mechanisms like local delivery boys,

subcontract to local delivery agencies etc.,

Hau Lees uncertainty framework

Efficient Supply Chain:

Low Uncertainty in Demand, Higher volume transaction, kind of a staple product that is

bought on a day to day basis.

Low uncertainty in Supply: Since it is a time critical process and at times due to hartals and

strikes, inventory of 2-3 months is always maintained. Supply uncertainty is low.

Su liers Printin Distribution CustomersWarehouse


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Newspapers use Efficient supply chains aim at creating highest cost efficiency since newspapers

are usually sold at below cost of production and their source of revenue is throughadvertisements. Non-core activities like distribution are handled by numerous agents. Scale

economies are pursued. Information linkages become primary in ensuring efficient and cost-

effective transmission of information across the supply chain

Demand Uncertainty

l

i

Low (Functional Products) High (Innovative Products)

Low (Stable Process)

High (Evolving process)

Efficient Supplychain


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BACKWARD SCHEDULING

Highly Time critical process and the shelf life of newspapers is only 2 hours.

The ScheduleCustomers receive newspaper : 6:00am to 6:30 am (normal days)

Agents dispatch at delivery points at: 5:00 am to 5:30am

Factory outlet to agents: 4:00 to 4:30 am

Printing complete and packaging done: 3:45 pm to 4:00 pm

Printing starts at: 11:30 pm to 11:45 pm

Soft copy of Blue print of newspaper reaches factory outlet by 11:15 to 11:30 pm

WORKFORCE SCHEDULING

Newspaper with supplements and weekend editions-

Day ofthe Week

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Staffneeded

8 8 8 8 8 10 10

10 periodicals (weekly and monthly)

Day of

the Week

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Staff

needed

8 8 8 8 8 8 8

Simultaneous printing happens.

One edition printed in a day for newspaper. No evening edition.

100 permanent company laborers hired in the factory-including printing, maintenance,

inventory management, cleaning, packing, transporting the newspapers and other jobs in thefactory.

4 machines present in the 2 printing facilities

Entire process including set-up takes approximately 4.5 hours

Total employees around 2000 including reporting teams, editors, permanent workers, quality

maintenance team, etc.

Overtime wages for weekend editions as workers are also called during the day on weekends


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Workforce scheduling for newspaper printing

Workforce scheduling for periodicals printing

M Tu W Th F Sa Su

8 8 8 8 8 8 8

8 8 7 7 7 7 7

7 7 7 7 6 6 6

6 6 6 6 5 6 6

5 5 5 5 5 6 5

5 5 4 4 4 5 4

4 4 3 4 4 4 3

3 3 2 3 3 4 3

2 2 2 3 2 3 2

2 2 1 2 1 2 11 1 0 1 0 2 1

0 1 0 0 0 1 0

0 0 0 0 0 0 0

Using the heuristics method for workforce scheduling,

Newspaper printing requirements 14 people

Periodical printing requirements 13 people

M Tu W Th F Sa Su

8 8 8 8 8 10 10

8 8 7 7 7 9 9

7 7 7 7 6 8 8

6 6 6 7 6 7 7

6 6 5 6 5 6 6

5 5 4 5 5 6 5

4 4 4 5 4 5 4

4 4 3 4 3 4 3

3 3 2 3 2 4 3

2 2 2 3 1 3 2

1 1 1 2 1 3 11 0 0 1 0 2 1

0 0 0 0 0 1 0

0 0 0 0 0 0 0


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Right now there are 18-20 laborers hired for printing. This is because due to the time criticality

of the industry, they are more comfortable underutilizing their resources rather than having the

exact number of required workers. However our analysis shows that the workforce buffer is

quite big and they can reduce it to a certain extent.

ANALYSIS OF WASTAGE

The trend chart below lists the number of newspaper copies rejected everyday for a last 52 days

at the printing press at Kozhikode. The wastage primarily occurs during the starts and stops of

the machines and is about 200 to 250 copies per production run. There are traditionally 4 to 5

production runs each day depending on the number of editions of newspapers being printed on

that day.

Average= 1001.9

Standard Deviation= 29.154

900

920

940

960

980

1000

1020

1040

1060

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51

Wastage

Wastage


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AGGREGATE PRODUCTION PLANNING

The production planning occurs through SAP software system that enables collaboration of

editorial teams, marketing and production managers. Each production unit (printing press) is

given a weekly production schedule for periodicals and daily production schedule for

newspapers.


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CAPACITY PLANNING

Mathrubhumi has a capacity of 45000 pages per hour per machine and it has 2 machines at

Calicut. The printing operations for newspapers start at 11:00 in the night. The setup time is

only 15 minutes which includes labor setup time and machine setup. Mathrubhumi has 4

different editions so there are a total of 4 setups every day. On an average 1.8 lakh newspapers

are sold every day. The average capacity utilization rate comes out to approximately 50%

considering that the printing needs to be completed in 4 hours, since the newspapers have to be

packaged and sent out to the agents by 4 am.

The company maintains a cushion of 100% because of the time criticality of the process. There

can be some unusual events like a breaking news coming in at the last minute and the entire

printing needs to be scrapped and new pages need to be printed, or there may be some

technical faults with one of the machines and the printing would then need to be done by one

machine which has a capacity of 45000 pages per hour i.e. 1.8 lack pages.

Another reason why the company maintains a capacity cushion of 100% is that in each machine

there are 6 units and if there is problem with even one of the units the production needs to be

halted and it needs to be repaired. Though, generally the mechanical repairs are done in half an

hour only but at times there can be a machine breakdown and it can take a day to repair the

machine. Thus the company maintains 2 machines and the excess capacity.

Packaging operations also take place simultaneously and after a particular lot has been printed

the packaging takes place. The company has 1 packaging machine and the time taken to pack

one lot is approximately 5-10 minutes. The capacity of the packaging machine is much higher

than the printing machine so packaging is not an issue for the company.


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OPERATIONS PROCESS IN A PRINTING PRESS


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QUALITY CONTROL

Quality Control is a highly important aspect of the newspaper industry since this industry is

highly time-dependent. A newspaper printed today is waste tomorrow. This is a 0-inventory

manufacturing process. It has highly demanding production schedules and also has a very

limited availability for planned maintenance. Thus it has an imminent need for equipment

reliability. For more than 100 years, the newspaper industry has been using the maintenance

theory ofrun-to-failure (RTF).

Source of Variation

There are two major sources of variances in the newspaper printing operation:

1. Input Material Variance2. Manual Adjustment Variance

The input material variance can be eliminated by purchases from trusted suppliers. This isdone by Matrubhumi as they import quality paper, technically called newsprint, from trusted

suppliers and the ink from fixed suppliers within the country.

The manual adjustment variance still remains a minor issue. According to the team, this is still

the best it can get and the wastage of 300-400 copies at the start and stop of each printing cycle

is a very nominal loss that cannot be minimized, despite mechanizing the process.

Existing Process

Quality checks at Matrubhumi happen at two levels:

1. Colour Control2. Newsprint Control

These are further checked at two levels:

1. Regular Workers at the machines constantly monitor quality(8 to 10 workers)2. Quality Team that performs checks on the machines on a daily basis (3 to 4 engineers)

In addition, the team also has a special software employed to check the quality of the print and

to minimize the wastage.

Colour Check: The software enables the controller to adjust the orientation of the paper and

the colour palettes and dyes in order to get the print correct at the earliest. The process is partly

manual and partly mechanised. The paper copies are verified manually by the workers to

ensure the colour coding is correctly managed through the alignment of the + signs at the

centre of each sheet that is printed as the page get inked in different colours. When the crosses

for all the colours overlap, the colour check is said to be verified and the copies printed

henceforth are usable. Until that happens the alignment is altered by the software to align the

crosses across all the machines to the standard.

Print Check: The Newsprint quality is verified by the experienced professionals, based on the

standard touch and feel techniques.


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The group of engineers specially designated to perform daily checks on the machines perform

standard procedural checks twice a day whereas the regular workers perform the checks at the

start and stop of each cycle of the run.

SUGGESTIONS FOR QUALITY MANAGEMENT

Installation

The printing machines need to be installed on the right foundation. While this is not an issue at

Matrubhumi, it still is an important step to be taken into account. The flooring beneath the

printing press must be completely level and solid. Printing presses run best when operated on a

truly level floor.

Daily Cleaning Process

The newspaper printing press must be cleaned before use on a daily basis. This helps improvethe quality of print generated and reduces the number of wasted newspapers.

Frequent Oiling

The machines need to be oiled approximately thrice a day based on the current usage of the

presses. Usually, diesel engine oil can be used for lubrication.

Scheduled Maintenance

The workers should try to create a maintenance program for the machines according to the

manufacturers recommendations. Some standard things to schedule can be regular oiling and

belt tightening.

Computerized Systems

A maintenance manager can enter the scheduled maintenance tasks in a computer. The

computer would then issue daily printouts of all jobs that have to be performed. When the

personnel perform the task, the result of the work is entered into the computer. The system at

Matrubhumi is semi-automated; it can be made more robust.

Another new technology that has been introduced recently is:

Predictive Maintenance Integration

Within the last couple of decades, preventive maintenance has become a large part of themaintenance thinking. In the last decade, newspapers have begun to embrace the concept of

predictive maintenance (PdM). This incorporates some of the advanced maintenances

technologies like Vibration analysis and monitoring, Thermography, Tribology, Ultrasound


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INVENTORY MANAGEMENT

For Newsprint:

International Suppliers Large quantities- Ordered on per container basis Fixed order quantity model Reorder point: 2500 rolls Safety Stock: 1500 rolls

For Printing Ink:

Sourced from national and local suppliers like Micro Inks, Organic Coatings and TirupatiInks

Moderate quantities- Ordered in batches Fixed order quantity model Based on typical printing requirement

o Reorder point is one weeks inventoryo Safety Stock is 2 days of inventory


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RECOMMENDATIONS

Automation in quality control is requiredo Manual adjustments are not very reliable and lead to a higher degree of wastage

Avoid daily inventory transfers from warehouseo Use buffer stock at printing presso This will lead to a reduction in transaction and transportation cost

Better customer feedback channels are required Electronic Media involving online forumsand not solely depending on agent to gather insights about newspaper circulation

Better inventory managemento Inventory is stored on the shop floor space which increases the possibility of

spoilages and also restricts mobility of the workers in the printing press area

OM Project Matrubhumi Group 7 Section A

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